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Wire Transfers and Foreign Drafts Page | 1 Last Updated: 2/3/2020

The Office of Procurement Services

Wire Transfers and Foreign Drafts A wire transfer is an electronic transfer of money, commonly to a foreign bank account. A foreign draft is a bank draft drawn on a financial institution in a foreign currency. This document outlines the process departmental staff should follow when issuing payment via wire transfer or foreign draft.

Payment via either method results in additional fees to your department. A $20 fee is charged per wire transfer or foreign draft. Fees are charged to the account(s) used to fund the supplier payment.

In BUY.IU, payment methods are driven by information entered by suppliers in the supplier portal. This means that suppliers must enter wire transfer or foreign draft information in their portal in order to receive payment via that method. Payments are issued by Treasury using the supplier’s provided information.

Suppliers must enter wire transfer or foreign draft information in their portal to receive payment in that manner. Failure to enter appropriate payment information in the portal results in extensive delays in payment.

Prior to following the procedures outlined below, contact the supplier and determine how they expect to be paid, wire transfer or foreign draft, and the currency they prefer. Often times the type of compensation (US Dollars versus foreign currency) is also defined in the supplier contract. These details inform completion of the requisition document.

Additionally, search for the supplier in BUY.IU, locate their supplier number, and run the ACH Lookup IUIE report. This report returns payment details for the supplier. If no information is returned the supplier has not entered wire transfer or foreign draft information on their profile. Payment information must be entered in the supplier portal prior to following the steps in this document.

Table of Contents Check Request Procedure ....................................................................................................................................................... 2

Non-Catalog Order Procedure ................................................................................................................................................ 9

https://purchase.sitehost.iu.edu/buying/doc/BUY.IU-searching-suppliers.pdf

https://apps.iu.edu/ie-prd/Iuie.do?use=Pdq&tech_nm=IE_KFS_PUR_AP_ACH_LOOKUP&orig_tech_nm=null&ro_status=PROD&ro_ver_nbr=4&iePath=zyxLookup_IE_KFS_PUR_AP_ACH_LOOKUP&multiPath=%3CMASTERFOLDER%3E/20120117095109381249/20120117103913423147/20120117105608032497/IE_KFS_PUR_AP_ACH_LOOKUP/



Check Request Procedure Whenever possible, enter the payment amount in the Unit Price field in the supplier’s requested currency. BUY.IU only records transactions in US Dollars (USD). When entering a foreign currency amount, disregard the “USD” notation next to the Unit Price field and follow the instructions outlined below. Treasury Operations staff use the information provided by the department know when to convert payments.

DO NOT ENTER CONVERTED AMOUNTS IN BUY.IU. The conversion of the payment is determined by the exchange rate the date payment is made. This conversion is completed by Treasury staff, not departments.

In this example, the supplier has requested payment via wire transfer. We have agreed to compensate the speaker 500 Euros. Enter “500” in the Unit Price field of the check request form.



Complete the check request form, add it to your Cart, and proceed to the requisition document. Once in the requisition, navigate to the Special Payment Instructions section in the left-hand menu. Here, you will specify additional details about the payment. Click edit in the upper right-hand corner to get started.

A new window opens. Click Select from all values… under the Wire transfer/foreign draft stated in field.



Choose the option from this drop-down menu which describes your situation. The table below provides a description of each option and an example of when each should be used.

Currency conversions are completed by Treasury based on the option chosen.

Drop down option Description

Wire stated in foreign currency

The amount stated on the requisition represents the amount the supplier should receive as a wire transfer in their preferred currency. Example: Supplier will be paid 500 Euros. “500” entered in check request form. No conversion necessary.

Wire stated in USD convert to supplier requested currency

The amount stated on the requisition represents the amount the supplier should receive in US Dollars which much be converted to the supplier’s preferred currency prior to the wire transfer being sent. Example: Supplier will be paid 500 US Dollars and requests payment in Euros. “500” entered in check request form. Amount must be converted to equivalent in Euros at time of payment.

Foreign draft stated in foreign currency

The amount stated on the requisition represents the amount the supplier should receive as a foreign draft in their preferred currency. Example: Supplier will be paid 500 Euros. “500” entered in check request form. No conversion necessary.

Foreign draft stated in USD convert to supplier requested currency

The amount stated on the requisition represents the amount the supplier should receive in US Dollars which much be converted to the supplier’s preferred currency prior to the foreign draft’s issue. Example: Supplier will be paid 500 US Dollars and requests payment in Euros. “500” entered in check request form. Amount must be converted to equivalent in Euros at time of payment.



In this example, the supplier expects to receive 500 Euros via wire transfer. We entered “500” in the check request form to reflect this. Choosing Wire stated in foreign currency from the drop-down menu communicates to Treasury that the amount entered on our request is already stated in a foreign currency.

Enter check stub text in the Check Stub Text field(s) describing the payment. These details are communicated to the supplier at time of payment. Click Save to save your changes and exit the window.



Finally, navigate to the Comments section in the left-hand menu.

Here, log a comment reiterating how the supplier’s payment should be processed. Treasury staff review the Comments section and will contact departments using the Comments if they have questions or need additional information.

Click Add Comment in the upper right-hand corner to get started.

State in what currency the payment was entered as well as what the supplier should ultimately receive as payment. It is not necessary to add Purchasing or Treasury staff as email recipients to your message. This comment acts as an audit record only and a point of reference for Treasury.



Click Add Comment to save the comment to the Requisition.

Complete the other areas of the requisition as necessary and submit.

The Invoice document associated with this check request routes to Treasury Operations. Once the wire or draft is complete, Treasury updates the Payment Information section of the invoice to reflect the payment method.



Additional details are available in the Note/Attachments section of the invoice. Here, Treasury states the amount of the wire or draft and the date the payment was initiated.

If the amount listed on the check request was entered in the foreign currency, Treasury updates the Invoice Unit Price to reflect the equivalent in US Dollars. This is the amount which posts to the General Ledger.

If you have questions about a wire transfer or foreign draft payment, contact Treasury Operations via email at [email protected].

mailto:[email protected]



Non-Catalog Order Procedure Whenever possible, enter the payment amount in the Price Estimate field in the supplier’s requested currency. BUY.IU only records transactions in US Dollars (USD). When entering a foreign currency amount, disregard the “USD” notation next to the Price Estimate field and follow the instructions outlined below. Treasury Operations staff use the information provided by the department know when to convert payments.

DO NOT ENTER CONVERTED AMOUNTS IN BUY.IU. The conversion of the payment is determined by the exchange rate the date payment is made. This conversion is completed by Treasury staff, not departments.

In this example, the supplier has requested payment via wire transfer. We are purchasing seven costumes from an international designer. Each costume costs 1,000 British Pounds.

Enter “1,000” in the Price Estimate field of the non-catalog item order.

Continue adding additional lines to your order, if needed. Ensure the Price Estimate of each line reflects the amount to be paid in the foreign currency. When finished, click Save and Close and proceed to the Cart and requisition.



Once in the requisition, navigate to the Special Payment Instructions section in the left-hand menu. Here, you will specify additional details about the payment. Click edit in the upper right-hand corner to get started.

A new window opens. Click Select from all values… under the Wire transfer/foreign draft stated in field.



Choose the option from this drop-down menu which describes your situation. The table below provides a description of each option and an example of when each should be used.

Currency conversions are completed by Treasury based on the option chosen.

Drop down option Description

Wire stated in foreign currency

The amount stated on the requisition represents the amount the supplier should receive as a wire transfer in their preferred currency. Example: Supplier will be paid 1,000 British Pounds. “1,000” entered in Price Estimate field(s). No conversion necessary.

Wire stated in USD convert to supplier requested currency

The amount stated on the requisition represents the amount the supplier should receive in US Dollars which much be converted to the supplier’s preferred currency prior to the wire transfer being sent. Example: Supplier will be paid 1,000 US Dollars and requests payment in British Pounds. “1,000” entered in Price Estimate field(s). Amount must be converted to equivalent in British Pounds at time of payment.

Foreign draft stated in foreign currency

The amount stated on the requisition represents the amount the supplier should receive as a foreign draft in their preferred currency. Example: Supplier will be paid 1,000 British Pounds. “1,000” entered in Price Estimate field(s). No conversion necessary.

Foreign draft stated in USD convert to supplier requested currency

The amount stated on the requisition represents the amount the supplier should receive in US Dollars which much be converted to the supplier’s preferred currency prior to the foreign draft’s issue. Example: Supplier will be paid 1,000 US Dollars and requests payment in British Pounds. “1,000” entered in Price Estimate field(s). Amount must be converted to equivalent in British Pounds at time of payment.



In this example, the supplier expects to receive payment in British Pounds via wire transfer. We entered amounts in the non-catalog item screen to reflect this. Choosing Wire stated in foreign currency from the drop-down menu communicates to Treasury that the amount entered on our request is already stated in a foreign currency.

Information entered in the Check Stub Text field(s) in this section is communicated at time of payment to the supplier. Enter any desired information and click Save to save your changes and exit the window.



Finally, navigate the Comments section in the left-hand menu.

Here, log a comment reiterating how the supplier’s payment should be processed. Treasury staff review the Comments section and will contact departments using the Comments if they have questions or need additional information.

Click Add Comment in the upper right-hand corner to get started.



State in what currency the payment was entered as well as what the supplier should ultimately receive as payment. It is not necessary to add Purchasing or Treasury staff as email recipients to your message. This comment acts as an audit record only and a point of reference for Treasury.

Click Add Comment to save the comment to the requisition.

Complete the other areas of the requisition as necessary and submit.

The BUY.IU invoice eventually routes to Treasury Operations so the payment may be initiated. Once the payment is complete, Treasury updates the Payment Information section to reflect the payment method.



Additional details are available in the Note/Attachments section of the invoice. Here, Treasury states the amount of the wire or draft and the date the payment was initiated.

If the amount listed on the requisition was entered in the foreign currency, Treasury updates the Invoice Unit Price to reflect the equivalent in US Dollars. This is the amount which posts to the General Ledger.

If you have questions about a wire transfer or foreign draft payment, contact Treasury Operations via email at [email protected].

mailto:[email protected]

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